President Donald Trump has reached an informal deal with Boeing to provide the next generation presidential aircraft.

Deputy press secretary Hogan Gidley says the $3.9 billion "fixed price contract" for the new planes, known as Air Force One when the president is on board, "will save the taxpayers more than $1.4 Billion."

Boeing, in a statement, said it is 'is proud to build the next generation of Air Force One." The company added: "President Trump negotiated a good deal on behalf of the American people."

The agreement includes the two 747-800 aircraft, and the cost of modifying the commercial planes with the equipment needed to support the president, including external stair, large galleys, and a secure communications suite.